On June 30, 2023, Attorney General Ashley Moody’s Medicaid Fraud Control Unit (MFCU) and the Orange Park Police Department announced the arrest of the former office manager of a nursing and rehab facility for grand theft. The defendant was accused of stealing nearly $30,000 from resident trust fund accounts for personal benefit.
The defendant worked as an assistant business office manager for a 120-bed skilled nursing facility (SNF) that provides both short-term treatment and long-term care. According to the investigation, the defendant took cash from the Patient Trust Fund, an account set up for residents to access cash to purchase personal items. The investigation revealed the defendant stole funds for more than two years totaling $29,504 from at least 40 residents. The SNF reimbursed all of the residents’ accounts for the losses and terminated the defendant.
The defendant faces one count of grand theft $20,000 or more, but less than $100,000, a second-degree felony. Attorney General Moody’s MFCU will prosecute the case through an agreement with the State Attorney’s Office for the Fourth Judicial Circuit.
Attorney General Ashley Moody said, “Florida seniors should not have to worry about their personal funds being stolen, especially from a manager of a nursing facility who is supposed to be looking out for them. The defendant’s actions are shameful, and I am grateful for my Medicaid Fraud Control Unit stopping this grand theft.”
Compliance Perspective
Issue
F602 in the State Operations Manual, Appendix PP, states that residents have the right to be free from abuse, neglect, and misappropriation of resident property. Every nursing facility should have a double check system in place for all monetary transactions, and all transactions should be reviewed and approved by a second party to prevent misappropriation of funds. Facilities are required to report any allegations of misappropriation or exploitation of a resident’s funds or personal property to local authorities as well as the state agency. Misappropriation of funds can result in fines, other sanctions, and imprisonment.
Discussion Points
- Review the facility’s policies and procedures on accounting and the use of facility and resident funds. Update as necessary.
- Train appropriate staff on your policies for financial accounting and the protection and approved use of facility and resident funds. Document that these trainings occurred and file in each employee’s education file. Provide education to residents and their representatives at Resident and Family Council meetings or via newsletters or postings on facility bulletin boards about the importance of monitoring their bank and credit card statements regularly and keeping credit and debit cards secure.
- Periodically audit to ensure that all monetary transactions have been double-checked and approved by a second party, and that all transactions have been previously approved, including those accessing resident funds. Ensure that an independent audit is conducted at least annually. Also audit staff understanding to ensure that they are aware of the steps that should be taken if they suspect theft, and their reporting options, including the use of the anonymous hotline.
*This news alert has been prepared by Med-Net Concepts, LLC for informational purposes only and is not intended to provide legal advice.*
